Tag Archives: contribution rate

EPF Contribution from 12% to 13%?

Effective from 1st January 2012, the EPF contribution from the employer to the employee for salaries below RM5,000 per month will be increased by 1%. This will bring the contribution rate by employers to 13% from 12%. The reason behind is that EPF is not enough for retirement for most people especially the low to middle income earners.


While employees are very happy with the new rules, many employers will be experiencing the extra financial burden. It leads to many concerns raised by them due to it’s unfair and irrational move during this economic condition.

How Does 1% Increase Affect You?

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